Article 491 of the Saudi Civil Transactions Law
المادة 491 من نظام المعاملات المدنية · الفرع الثاني: التزامات الوكيل
The article bars an agent authorized to buy a specific item from buying it for himself, and bars him from buying from his own property, his relatives' property, or from anyone dealing with whom benefits him, except with his principal's permission.
Official text (Arabic)
This article has not been amended since the law was issued.
1- لا يجوز لمن وكل في شراء شيء معين بالذات أن يشتريه لنفسه، ويكون الشراء للموكل ولو صرح الوكيل بأنه يشتريه لنفسه.
2- لا يجوز للوكيل في الشراء أن يكون شراؤه من ماله أو من مال أصوله أو فروعه أو زوجه أو ممن كان التصرف معه يجر مغنمًا أو يدفع مغرمًا إلا بإذن موكله.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 491 explained in plain English
This article deals with conflicts of interest between a purchasing agent and his principal, and sets out two rules:
- A specific item: A person authorized to buy a specific item may not buy it for himself. If he does, the purchase is for the principal, even if the agent declared that he was buying it for himself.
- The source of the purchase: A purchasing agent may not buy from his own property, or from the property of his ascendants (such as parents), his descendants (such as children), his spouse, or anyone dealing with whom would bring him a benefit or spare him a loss, except with his principal's permission.
The purpose is to protect the principal from an agent putting his own interest, or that of those close to him, ahead of the interest of the person who appointed him. If the principal gives permission, the prohibition falls away in the cases listed in the second paragraph.
The article should be read together with the second paragraph of Article 492, which provides that if the agent declares, in the principal's presence, that he bought the item for himself, the purchase is the agent's. Article 490, before it, bars an agent whose price was not specified from buying for more than the fair market price.
If there is a dispute about for whom the purchase was made or whether a conflict of interest exists, it is advisable to consult a lawyer specializing in civil matters.
Practical example
Naif appointed his friend to buy a specific car displayed at a showroom in Jeddah. The friend liked it and bought it, saying it was his. Under the article, the purchase is for Naif, not the friend. And if the friend wanted instead to sell Naif a car owned by his father, he could do so only with Naif's permission.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentA question about Article 491 of Civil Transactions Law?
Describe what happened and specialist lawyers answer. You can write in English.
- Completely free
- Lawyers from the directory answer
- Your name stays hidden
Civil Litigation & Compensation lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Civil Litigation & Compensation lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Active contributor
Unwan Law Firm
Frequently asked questions about Article 491 of the Saudi Civil Transactions Law
May an agent buy for himself the item he was authorized to buy?
If the item is specific, he may not, and the purchase is for the principal even if the agent declared that he was buying it for himself.
May an agent buy for his principal from his father's or his wife's property?
Not except with the principal's permission. The same applies to buying from his own property, from his descendants, or from anyone dealing with whom brings a benefit or spares a loss.
When is the purchase the agent's own?
Article 492 provides that if the agent declares in the principal's presence that he bought the item for himself, the purchase is the agent's.
More articles on Agency Contract
- Article 87
The article permits contracting through representation unless statutory texts require otherwise, and divides representation into agreed, judicial and statutory.
1- يصح التعاقد بالنيابة؛ ما لم تقتض النصوص النظامية خلاف ذلك. 2- تكون النيابة في التعاقد اتفاقيةً أو قضائيةً أو نظاميةً.
- Article 88
The article prohibits a representative from exceeding the limits of his representation as set in the instrument creating it, whether a contract, a court judgment or a statutory text.
ليس للنائب أن يتجاوز حدود نيابته المعيَّنة في سند إنشائها، سواء أكان السند عقدًا أم حكمًا قضائيًّا أم نصًّا نظاميًّا.
- Article 90
If the representative contracts within the limits of his representation and in the principal's name, the rights and obligations arising from the contract are attributed to the principal.
إذا تعاقد النائب في حدود نيابته باسم الأصيل فإن ما ينشأ عن العقد من حقوقٍ والتزاماتٍ يُضاف إلى الأصيل.
- Article 152
The article provides that when the beneficiary approves what the volunteer agent did, the rules of agency apply to that work.
تسري أحكام الوكالة إذا أجاز المنتفع ما قام به الفضولي.
- Article 356
A representative may not buy for himself what he was entrusted to sell, even at auction or in another's name, without permission; the same applies to an intermediary, expert and the like.
مع مراعاة النصوص النظامية؛ ليس للنائب أن يشتري لنفسه باسمه أو اسم غيره ولو بطريق المزاد ما عهد إليه بيعه بمقتضى نيابته ما لم يكن مأذونًا له بذلك، كما لا يحق ذلك
- Article 357
A sale by a representative, intermediary or expert to himself does not take effect against the owner unless he approves it, while a good-faith specific successor who acquired a real right for consideration is protected.
إذا تمَّ البيع في الأحوال المنصوص عليها في المادة (السادسة والخمسين بعد الثلاثمائة) من هذا النظام، لم ينفذ في حق من تم لحسابه إلا إذا أجازه، وليس له أن يحتج بعد
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.